Tech start-ups relocate to Raleigh

RALEIGH, North Carolina (WTVD) -- When it comes to the 'Best American Cities to Work in Tech in 2017,' Raleigh is number four on the list.

Proximity to RTP and major research universities are a few reasons the Capital City makes the list, but, for tech startups flocking to the area, the big draw is that the capital ranks as one of the cheapest cities to base a tech startup.

"Our office space in Cary is just over a thousand bucks a month," explained MapMyCustomers CEO and Founder Matthew Sniff.

"That same space in San Francisco would be $120,000 dollars a month. So, when you're talking about real commercial space you can't really compare the two because we'd be out of money right now if we were in San Francisco," Sniff said.

Sniff lived in several tech cities before rooting his company in the Raleigh area. He considers it an invaluable edge and says the area checked the most boxes in terms of quality of life, access to capital and a competitive advantage.

Sniff's company is one of many recently relocating to Raleigh. At HQ Raleigh, seven start ups recently left Silicon Valley to relocate to North Carolina including John Fallone's tech policy non-profit, Lincoln Network.

"I met a ton of people here that have moved out from the Bay Area for that exact reason," Fallone said.

"They were just frustrated with the cost of living frustrated with always do things related to living in Silicon Valley rather than building a company." The tech start ups are helping to fuel a growing industry in the greater Raleigh area of shared workspaces and incubators.

The Greater Raleigh Chamber lists thirteen incubators and co-working spaces. That list now grows to fourteen with the latest to open in downtown Raleigh,HQ Capital Club.